Swiss National Railway Company SBB Completes £38.3 Million Sale Leaseback

Property Week - July 6, 2007

Livermore Investments Group, an AIM-listed company that gave up online gaming in January to become an investment company, has carried out its first property deal. The group, led by Noam Lanir, paid CHF93.5m (£38.3m) for a 366,000 sq ft office in Bern in a sale-and-leaseback deal with the Swiss national railway company, SBB.

The deal is the first in Livermore’s aim to buy $1bn (£500m) of mainly Swiss Property ‘generating secure income streams from tenants with high credit ratings’. The block, Wylerpark, will be leased by SBB for a minimum of 12 years at CHF4.3m (£1.77m - a 4.6% cap rate) a year for the first year, rising each year in line with the Swiss consumer price index.

Livermore will also build 39 flats overlooking the Alps on the land, which are expected to be completed in 2008 at a cost of CHF16m (£6.5m). It has also bought the rights for 86,000 sq ft of office development at a later date, which it said it intended to pursue.

"This investment will generate a secure income stream from an AAA-rated tenant and potentially provide additional yield enhancement through the development of the accompanying residential project and the additional commercial development rights," he added. Sphere: Related Content